Armada Company has these comparative balance sheet data:
ARMADA COMPANY
Balance Sheets
December 31
2010 2009
Cash $ 25,000 $ 30,000
Receivables (net) 65,000 60,000
Inventories 60,000 50,000
Plant assets (net) 200,000 180,000
$350,000 $320,000
Accounts payable $ 50,000 $ 60,000
Mortgage payable (15%) 100,000 100,000
Common stock, $10 par 140,000 120,000
Retained earnings 60,000 40,000
$350,000 $320,000
Instructions
Compute the following ratios at December 31, 2010.
(a) Current. (e) Days in inventory.
(b) Receivables turnover. (f ) Cash debt coverage.
(c) Average collection period. (g) Current cash debt coverage.
(d) Inventory turnover. (h) Free cash flow.